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Which government measure will allow a local business to gain access to overseas markets?YOUR ANSWERYour AnswerThe finalising of a free trade agreement.The imposition of a tariff.The imposition of a tariff and/or a quota.The imposition of a quota.

Question

Which government measure will allow a local business to gain access to overseas markets?YOUR ANSWERYour AnswerThe finalising of a free trade agreement.The imposition of a tariff.The imposition of a tariff and/or a quota.The imposition of a quota.

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Solution

The government measure that will allow a local business to gain access to overseas markets is the finalising of a free trade agreement.

Here's a step-by-step explanation:

  1. A free trade agreement (FTA) is a treaty between two or more countries to establish a free trade area where commerce in goods and services can be conducted across their common borders, without tariffs or hindrances.

  2. When a government finalises a free trade agreement with an overseas country, it means that local businesses can export their goods or services to that country with reduced or no tariffs. This makes their products more competitive in the overseas market.

  3. On the other hand, the imposition of a tariff or a quota would restrict trade, making it harder for local businesses to access overseas markets. Tariffs increase the cost of exporting goods, making them less competitive, while quotas limit the amount of goods that can be exported.

  4. Therefore, the finalising of a free trade agreement is the government measure that will allow a local business to gain access to overseas markets.

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